I am looking for some feedback from long-term (with no foreseeable plans of returning) or permanent US expats with non-US partners who have or are expecting a child or children. Will you or did you declare/obtain US citizenship for your LO? Why or why not?
I have been an expat for over 15 years, and will not be returning to the US to live. My partner's citizenship, which LO will acquire at birth, is very desirable and gives access to many countries - including the US so he will be able to visit family - plus security in case of emergencies overseas. With the current situation of FACTA/FBAR laws and the increasingly burdensome laws of disclosure and taxation on non-resident US citizens, I am seriously considering not automatically declaring our LO as a US citizen and letting him decide when he is old enough. I love my country and it makes me sad that he may not be American (at least officially), but as Americans are becoming more blacklisted from certain services (banking, investing, even being hired as it could expose the company to IRS scrutiny, depending on the position), I am struggling to see the advantages that a US passport could have for my LO as he will not be living there.
Has anyone been or is anyone in this situation? If your LO is not American, have you had any trouble travelling alone to the US with him/her?
Re: Question for long-term/permanent US expats with non-US partners
@zazouille But i've read quite a bit about what you've written - Americans in the EU are giving up their American citizenship due to the IRS trying to tax assets abroad.
TTC since January 2015
3/15/2015 BFP!
4/15/2015 MMC
2/25/2016 BFP! Hoping for the best!
@kimey1 In your position, if I had to choose at birth to give him US citizenship or he would never be able to obtain it, I would definitely give it to him, as it is easier for a young adult (18) to renounce US citizenship than an older adult who has already worked and paid taxes.
@linnea625 I'm also an American living in France, but I work in Switzerland at a UN organization... try to find an accountant who is simultaneouly competent in French, US, and UN tax law! My banks in France and Switzerland allow me to have bank accounts... and that's about it. No money placements, investments, etc., and of course they made me sign paperwork permitting them to give all of my details and my account details over to the IRS, and if I refused, my accounts would be closed.
I would be hesitant about giving your non-US husband's info to the IRS, as you will have to declare his income too - depending on how much the both of you make this could be a disadvantage. I was married for 10 years and always ticked the box "married, filing separately", and never gave my ex-husband's info to the IRS, because it was none of their business.
My problem is the opposite, I have no assets in the US, all in France, and the US wants a part of my 100% European pie that it had no part in baking.
We have definitely decided baby will be a dual With all that's going on lately I feel like staying in the US or Asia, where my family is.
And that COULD cause issues when you travel to the US. Technically because they're entitled, they need to have that passport to enter or you could be fined.
I made it official for both my kids, because I think they'd like to have the option to live there when they're grown up. All of my family is still in the states and it's a great passport to have, ridiculous tax laws or not.
I also got my kids UK citizenship. I love the options that gives them.
(they were born in Australia)
I think you should just get it and not worry about it til later. They don't have to file taxes for many many years anyway.
So apparently the law (INA: ACT 301) states: "The following shall be nationals and citizens of the United States at birth...."
What does "shall" mean? (Is anyone here a lawyer?...) Can it be interpreted as "have the right to"/"are entitled to" or "are obligated to"/"must"? One could interpret it to mean the former, and I would bet that those who drafted this law with this wording certainly regarded US citizenship as a privilege that people seek instead of a burden to be avoided. I haven't found anything on the web as to what the penalties (fines, etc.) would be if one does not declare him/herself a US citizen.
I did find out that if I do declare my baby's birth and he becomes a documented US citizen, he will be subjected to all the taxes and hassle yet he will not be able to transmit his citizenship to his children (presuming the mom is not a US citizen, which is likely) unless he has lived for a certain period of time in the US...
This article sums up my frustration with the situation but doesn't touch on all of the problems (such as capital gains and the aforementioned transmission of citizenship): https://www.forbes.com/sites/robertwood/2014/09/12/dear-son-why-you-should-leave-america-now/2/#2aaa027747d4
I'm sure you all know that the renunciation fee has been increased recently by 422%, from $450 to $2,350, although I've read that it is free between the ages of 18 and 18 1/2.
So glad to have found this thread!
I am an American living in Germany with my German husband. This will be our first child so we are trying to figure out all of the legalities.
Is there anyone who is an American citizen who traveled to the US with a child who only has foreign citizenship?
We want our child to have both but are planning to travel to the US shortly after the birth and I'm worried we won't have enough time to get all of the German and American documents beforehand!
@linnea625 I avoid the IRS taxing our joint savings by filing separately and keeping the majority of the savings in a separate account (not the one my income is paid into). So far no problems.
DS#2 due 25 April 2019
If you were to register him/her as a US citizen, I've read and been told it takes 1 month to get the baby's US passport. When traveling to the US, the baby must enter the States with the US passport.
DS#2 due 25 April 2019
The Congress recently delivered the Tax Fairness For Americans Abroad Act of 2018, aimed at alleviating the burden of American expats having to file US taxes on their foreign incomes as well as taxes in their country of residence. It’s an issue affecting both temporary and permanent expats, accidental Americans borne of an American parent abroad and eve those born to foreign parents in America.
The Act seeks to allow American expats who can prove that they pay foreign taxes to opt out of US expat tax returns on their foreign earned income. The bill also provides for qualifying expatriates to chosoe not to pay US capital gains tax on disposal of their foreign assets or any other gain or passive income made while they were foreign residents.